THE knowledge-based economy in the region has been given a £10.5m boost.

North-East universities and partnership projects in the region were awarded the money from the Higher Education Innovation Fund (HEIF).

It is the second time that HEIF grants have been distributed nationwide, with a total of more than £185m being awarded over the next two years.

Among the awards for the region was a £1.4m grant to Knowledge House, an organisation set up to promote and fund academic and business joint projects in the North-East.

Knowledge House, at Hylton Park, Sunderland, is a collaborative venture between the universities of Durham, Newcastle, Northumbria, Sunderland, Teesside and the Open University.

Mark Jackson, Knowledge House business development director, said: "The funding will ensure Knowledge House continues to drive innovation and productivity in the North-East economy.

"It is also a recognition of the important role we play in the region by helping the entrepreneurial culture to grow."

The awards were announced by the Higher Education Funding Council for England and are part of the Government's strategy to provide high-quality job opportunities in the regions. Direct awards to universities included £2m to the University of Durham and University of Newcastle, £1.5m to University of Sunderland and £2.345m to University of Teesside.

An award of £395,640 went to Darlington College of Arts. Other awards for collaborative activity were made to Sunderland (£324,563) and to Teesside (£396,500).

Lord Sainsbury, Science and Innovation Minister, said: "Our universities play a vital role in generating world-class knowledge and research and providing us with a highly qualified workforce.

"It is essential that they continue to develop and enhance their capability to work with business, to turn new ideas and technology into prosperity and jobs."